If all you have to manage at your business is accounting, than there isn’t really much difference. But not many of us have just accounting to think about. Years ago, accounting software was much more popular, but today ERP software is taking the lead.
Here are a few key reasons how they’re different and why ERP ranks higher in popularity today:
- Accounting is a Subset of ERP Software. Accounting software manages your financials so you can manage accounts receivable and payable, budgets, and payroll. But the functionality usually ends there. If you want to track other areas such as orders, inventory, or historic data, you’re out of luck. ERP Software can extend your reach and streamline all areas of your business including accounting.
- Better Control of Your Resources. Since accounting software doesn’t reach into various departments, it’s difficult to control your resources such as headcount, materials used, costs in relation to profits and equipment. With ERP Software, you gain insight into details so you can make good business decision.
- Profitability Analysis Capabilities. Accounting software helps you take the necessary actions to accept payments and pay employees, but it doesn’t give you information so you can figure out your profitability. If you’re not actually making money, you need to know that in order to do things differently. ERP Software tracks everything from start to finish in real-time and therefor can provide data to help you achieve higher profitability.
If you have questions about more differences between accounting software and ERP software, please feel free to contact us at PANGEA Business Solutions.
By Alexandra Gonzalez with PANGEA Business Solutions- http://www.pangeabsi.com/